§ 532 — Bonds of the authority

§ 532. Bonds of the authority. 1. The authority shall have power and\nis hereby authorized from time to time to issue its negotiable bonds in\nconformity with applicable provisions of the uniform commercial code for\nany corporate purpose in the aggregate principal amount not to exceed\none hundred fifty-three million two hundred fifty-five thousand dollars.\n 2. In addition to the bonds authorized in subdivision one of this\nsection, the authority shall have power from time to time and whenever\nit deems refunding expedient, to issue bonds in such principal amount as\nthe authority may determine for the purpose of refunding bonds then\noutstanding and to issue such additional bonds as may be necessary to\npay the costs incurred in connection with said refunding, whether the\nbonds to be refunded have or have not matured. The refunding bonds may\nbe exchanged for the bonds to be refunded with such cash adjustments as\nmay be agreed, or may be sold and the proceeds applied to the purchase,\nredemption or payment of the bonds to be refunded, provided, however,\nthat upon any such refunding or repayment the aggregate principal amount\nof outstanding bonds may be greater than one hundred fifty-three million\ntwo hundred fifty-five thousand dollars only if the present value of the\naggregate debt service of the refunding or repayment bonds to be issued\nshall not exceed the present value of the aggregate debt service of the\nbonds so to be refunded or repaid. For purposes hereof, the present\nvalues of the aggregate debt service of the refunding or repayment bonds\nand of the aggregate debt service of the bonds so refunded or repaid,\nshall be calculated by utilizing the effective interest rate of the\nrefunding or repayment bonds, which shall be that rate arrived at by\ndoubling the semi-annual interest rate (compounded semi-annually)\nnecessary to discount the debt service payments on the refunding or\nrepayment bonds from the payment dates thereof to the date of issue of\nthe refunding or repayment bonds and to the price bid including\nestimated accrued interest or proceeds received by the authority\nincluding estimated accrued interest from the sale thereof.\n 3. Bonds shall be authorized by resolution of the board and shall bear\nsuch date or dates, mature at such time or times, not exceeding fifty\nyears from their respective dates, bear interest at such rate or rates,\npayable semi-annually, be in such denominations, be in such form, either\ncoupon or registered, carry such registration privileges, be executed in\nsuch manner, be payable in such medium of payment, at such place or\nplaces, and be subject to such terms of redemption (not inconsistent\nwith subdivision four of this section) as such resolution or resolutions\nmay provide. Any bonds of the authority may be sold at public or private\nsale for such price or prices as the authority shall determine.\n 4. Every issue of bonds shall be subject to redemption prior to\nmaturity at the election of the authority on notice by publication in a\nnewspaper published in the city of New York of not more than ninety\ndays, and if the state shall furnish the authority with sufficient money\ntherefor, the authority shall redeem the bonds in accordance with the\nterms of redemption then applicable.\n 5. Except as otherwise may be expressly provided by the authority\nevery issue of bonds and notes shall be general obligations payable out\nof any moneys or revenues of the authority, subject only to any\nagreement with the holders of particular bonds or notes pledging any\nparticular tolls or revenues.\n 6. Any resolution or resolutions authorizing any bonds or notes may\ncontain provisions, which shall be a part of the contract with the\nholders of the bonds or notes, as to\n (a) Pledging the tolls and revenues of the bridges or any of them to\nsecure the payment of the bonds or notes;\n (b) The rates of the tolls to be charged, and the amount to be raised\nin each year by tolls, and the use and disposition of the tolls and\nother revenues;\n (c) The setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (d) Limitations on the right of the authority to restrict and regulate\nthe use of the bridges;\n (e) Limitations on the purposes to which the proceeds of sale of any\nissue of bonds or notes then or thereafter to be issued may be applied\nand pledging such proceeds to secure the payment of the bonds or notes\nor of any issue thereof;\n (f) Limitations on the issuance of additional bonds or notes or on\nother debt;\n (g) The procedure, if any, by which the terms of any contract with\nbondholders or noteholders may be amended or abrogated, the amount of\nbonds or notes the holders of which must consent thereto, and the manner\nin which such consent may be given;\n (h) Limitations on the amount of moneys derived from any of the\nbridges to be expended for operating, administrative or other expenses\nof the authority;\n (i) Vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the authority may determine which may include any or\nall of the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to section five hundred thirty-seven hereof, and\nlimiting or abrogating the right of the bondholders to appoint a trustee\nunder said section or limiting the rights, duties and powers of such\ntrustee;\n (j) Any other matters, of like or different character, which in any\nway affect the security or protection of the bonds or notes.\n 7. Neither the members of the board nor any person executing such\nbonds or notes shall be liable personally on said bonds or notes or be\nsubject to any personal liability or accountability by reason of the\nissuance thereof.\n 8. The authority shall have power out of any funds available therefor\nto purchase any bonds or notes issued by it. The authority may hold,\ncancel, or resell such bonds or notes subject to and in accordance with\nagreements with bondholders or noteholders.\n 9. It is the intention hereof that any pledge of tolls or other\nrevenues or other moneys made by the authority shall be valid and\nbinding from the time when the pledge is made; that the tolls or other\nrevenues or other moneys so pledged and thereafter received by the\nauthority shall immediately be subject to the lien of such pledge\nwithout any physical delivery thereof or further act, and that the lien\nof any such pledge shall be valid and binding as against all parties\nhaving claims of any kind in tort, contract or otherwise against the\nauthority irrespective of whether such parties have notice thereof.\nNeither the resolution nor any other instrument by which a pledge is\ncreated need be recorded.\n